Account for local government funds

Mar 03, 2009

LAST week, a sh414b local government project was launched in Lira. The programme, funded by the World Bank and to be implemented by the Government, replaces the Local Government Development Programme.

EDITOR’S COMMENT

LAST week, a sh414b local government project was launched in Lira. The programme, funded by the World Bank and to be implemented by the Government, replaces the Local Government Development Programme.

It will facilitate various sectors of the local government. For many years, funding of local governments has been strained.

Several reports have accused local governments of misusing funds, therefore, as local governments receive more funding, they must make sure they account for the money. This will also help them attract more funding.

In fact, the Vice-President, Prof. Gilbert Bukenya, has warned local governments against corruption.

The World Bank country manager, Kundhavi Kadiresan, said creating new districts over-burdens the ministry. This has come up at a time when over 30 areas are lobbying for district status, in addition to the current 81 districts.

New districts, in most cases, need a minimum of sh5b to start. Most of the new district budgets have to be funded by the central government. Another issue that was cited was on local revenue.

It has been dwindling by the day, so it needs to be revitalised. Therefore, local governments should find viable sources of revenue to fight poverty.

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